Alphabet is more than just a Google search engine. Alphabet is looking for new ways to grow because search related revenue growth may be slowing. Alphabet's most recent quarter saw Ad revenue up nearly 16% year over year compared to Facebook's 59% increase.
One cause for concern, Google’s paid clicks are going up, but the cost-per-click aka CPC, the key metric Wall Street looks at is still on the decline. That’s because mobile ads are lower value than the desktop search ads.
Maybe Alphabet is more than just a search engine. They did unveil three new hardware products in 2016:
1. The Pixel Smartphone
2. Google Home - A voice activated device that competes with Amazon Echo
3. Google Wifi
Google also updated ChromeCast.
Even with all these projects, Google ads pull in nearly 90% of Alphabet revenues.
For the second quarter of 2016
Ad revenue: $19.1 Billion
All other revenue: $2.4 Billion
For 2017, Alphabet hired Diane Green, formerly from VMWare to improve and expand cloud services.
Then there is the Google X labs. X, is semi-secret research-and-development facility founded by Google in January 2010. Projects such as Waymo (driverless cars), Loon, Wing, Glass and Barge are all examples of projects Google founders call 'moonshots'.
Perhaps one day one of these so called 'moonshots' will take off and be the next must have thing.